Lease Accounting Standard Adoption, By Company Size

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By May 25, 2018 at 10:08am

LEASE ACCOUNTING STANDARD ADOPTION, BY COMPANY SIZE

Has your company begun the transition to the new lease accounting standard?

Yes No
National 26% 74%
20-49 employees 18% 82%
50-99 employees 42% 58%
100-249 employees 31% 69%
250-499 employees 38% 61%
500-999 employees 65% 35%
1,000+ employees 49% 51%

Finance leaders who reported their company has begun the transition also were asked the questions below:

As part of that transition, have you begun the diagnostic work necessary to determine the level of effort which will be required for you to be ready to adopt the new standard?

Yes, already completed Yes, started but not completed No, haven't started
National 60% 40% 0%
20-49 employees 61% 39% 0%
50-99 employees 56% 44% 0%
100-249 employees 62% 36% 0%
250-499 employees 47% 53% 0%
500-999 employees 78% 23% 0%
1,000+ employees 65% 35% 0%

Have you completed the following?

Written new accounting policies

National 65%
20-49 employees 71%
50-99 employees 53%
100-249 employees 61%
250-499 employees 50%
500-999 employees 85%
1,000+ employees 80%

Made an inventory of, and prioritized, any systems changes which might be required:

National 64%
20-49 employees 76%
50-99 employees 60%
100-249 employees 26%
250-499 employees 69%
500-999 employees 57%
1,000+ employees 78%

Written new accounting procedures

National 63%
20-49 employees 79%
50-99 employees 47%
100-249 employees 47%
250-499 employees 33%
500-999 employees 51%
1,000+ employees 78%

Identified team members and responsibilities for completing the transition to new standard

National 61%
20-49 employees 59%
50-99 employees 48%
100-249 employees 76%
250-499 employees 60%
500-999 employees 85%
1,000+ employees 100%

Developed a project plan to address all gaps emanating from the diagnostic work

National 56%
20-49 employees 59%
50-99 employees 45%
100-249 employees 66%
250-499 employees 32%
500-999 employees 61%
1,000+ employees 91%

Investigated any lease or property management systems which will facilitate adoption:

National 56%
20-49 employees 71%
50-99 employees 45%
100-249 employees 17%
250-499 employees 42%
500-999 employees 78%
1,000+ employees 50%

Identified, at a high level, the magnitude and type of the lease inventory (e.g., property, equipment)

National 54%
20-49 employees 58%
50-99 employees 49%
100-249 employees 27%
250-499 employees 80%
500-999 employees 66%
1,000+ employees 74%

What is the most challenging aspect of the transition to the new standard?

National

1. Training staff
2. Diagnosing the needed changes
3. Finding professionals with the requisite experience

20-49 employees

1. Training staff
2. Diagnosing the needed changes
3. Identifying, inventorying and categorizing company’s leases

50-99 employees

1. Updating technology
2. Managing change
3. Finding professionals with the requisite expertise

100-249 employees

1. Finding professionals with the requisite expertise
2. Diagnosing the needed changes
3. Training staff

250-499 employees

1. Updating technology
2. Training staff
3. Managing change

500-999 employees

1. Updating technology
2. Finding professionals with the requisite expertise
3. Managing change

1,000+ employees

1. Managing change
2. Diagnosing the needed changes
3. Updating technology

For your company, which new accounting standard has been more challenging to adopt?

Revenue recognition Lease accounting
National 72% 28%
20-49 employees 68% 32%
50-99 employees 80% 20%
100-249 employees 77% 24%
250-499 employees 81% 19%
500-999 employees 71% 29%
1,000+ employees 71% 29%

How much of the processes and learnings from transitioning to the new revenue recognition standard have you been able to apply to adopting the new lease accounting standard?

Most of them Some of them Almost none of them
National 25% 61% 15%
20-49 employees 21% 61% 17%
50-99 employees 27% 66% 7%
100-249 employees 35% 55% 10%
250-499 employees 21% 74% 5%
500-999 employees 46% 38% 16%
1,000+ employees 42% 31% 26%

Source: Robert Half and Protiviti survey of more than 270 finance leaders in Canada; totals may not equal 100 per cent due to rounding.

© 2018 Robert Half International Inc.

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